The cryptocurrency market is demonstrating notable resilience even as U.S. equities experience a significant downturn, prompting many investors to consider bitcoin as a potential hedge against the turbulent financial landscape.

The recent market turmoil follows President Donald Trump’s announcement of reciprocal tariffs, which resulted in a staggering $5.4 trillion wipeout in U.S. equities within just two days. This tumultuous period saw the S&P 500 index plunge to its lowest point in eleven months, while the Nasdaq 100 entered bear market territory, raising concerns among investors.

Despite these challenges, the cryptocurrency market has shown a surprising degree of stability. Bitcoin, often viewed as a barometer for the crypto sector, saw a moderate drop of about 6% since the announcement of the tariffs, a stark contrast to the Nasdaq’s decline of 11%. During the same time, the broader cryptocurrency market, as tracked by the CoinDesk 20 (CD20) index, experienced a roughly 4.9% decrease.

To place these figures in context, the total market capitalization of cryptocurrencies now stands at approximately $2.65 trillion, according to data from TheTie. In the most recent 24-hour period, bitcoin registered a slight decline of 0.3%, settling at $82,619.77, whereas the broader CD20 managed a minor increase of around 0.2%. When the market closed on Friday, most stocks associated with cryptocurrencies suffered losses, though a few notable exceptions saw gains.

For instance, bitcoin mining company MARA Holdings (MARA) recorded a 0.6% increase, while Core Scientific (CORZ) saw a 0.4% uptick. Furthermore, MicroStrategy (MSTR), the largest corporate holder of bitcoin with an impressive 528,185 BTC on its balance sheet, surged by 4%. This performance starkly contrasted with the Nasdaq's significant plunge of 5.8% on the same day.

Looking ahead, experts believe that cryptocurrency prices are likely to maintain their resilience. Thanks to their accessibility via traditional investment vehicles like exchange-traded funds (ETFs) and their proven performance during market volatility, cryptocurrencies might serve as a “useful hedge against traditional finance,” according to Geoffrey Kendrick, an analyst at Standard Chartered.

In a recent email dated April 4, Kendrick expressed optimism about bitcoin's evolving role, suggesting that it could now be viewed as a hedge against U.S. isolation. He illustrated his point with a chart indicating that, among the so-called Magnificent 7 stocks, only Microsoft outperformed bitcoin during the recent sell-off.

The cryptocurrency community is riding high on this resilience as they recently commemorated the alleged birthday of bitcoin's enigmatic creator, Satoshi Nakamoto. This date, while debated in authenticity, is deemed symbolic as it aligns with the anniversary of Executive Order 6102, signed by President Franklin D. Roosevelt on April 5, 1933. This order mandated that all Americans turn in their gold holdings to the Federal Reserve, marking a significant moment in U.S. financial history.

For those seeking further insights, read more about how bitcoin is starting to decouple from the Nasdaq as U.S. stocks continue to falter: Bitcoin Begins to Decouple From Nasdaq as U.S. Stocks Crumble.